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Protective Life Corporation (NYSE: PL) (“the Company”) today reported results for the first quarter of 2014. Net income for the first quarter of 2014 was $83.6 million or $1.03 per average diluted share, compared to $78.3 million or $0.97 per average diluted share in the first quarter of 2013. After-tax operating income was $96.5 million or $1.19 per average diluted share, compared to $71.4 million or $0.89 per average diluted share in the first quarter of 2013.
“We are pleased to report solid results across all segments in the first quarter,” said John D. Johns, Chairman, President, and CEO. “Operating earnings of $1.19 per share were up 34% over the first quarter of 2013 and exceeded our plan for the quarter by $.07 per share. Strong results in the Annuity and Stable Value lines offset the impact of unfavorable mortality in Life Marketing, Acquisitions and Annuities. While sales in Life Marketing and Annuities were below plan in the quarter, our recent sales trends have improved and we expect to see sales revert to plan as the year progresses. The MONY acquisition integration plan is on track, and the Acquisition segment reported record earnings of $61.0 million, including a strong contribution from the MONY blocks. We are off to a strong start in 2014, and we remain confident in our ability to achieve or exceed our plans for the year.”
Business Segment Results
The table below sets forth business segment operating income (loss) before income tax for the periods shown:
Operating Income (Loss) Before Income Tax
($ in thousands)
Stable Value Products
Corporate & Other
The following table reconciles segment operating income to consolidated net income:
($ in thousands)
Operating income before income tax
Realized investment gains (losses)
Amortization of deferred policy acquisition costs, value of business acquired, and benefits and settlement expenses
Income tax expense
The Company uses sales statistics to measure the relative progress of its marketing efforts. The Company derives these statistics from various sales tracking and administrative systems and not from its financial reporting systems or financial statements. These statistics measure only one of many factors that may affect future profitability of the business segments and therefore are not intended to be predictive of future profitability.